Aave governance will migrate 1,600 ETH to wstETH and rETH

In an effort to put idle ether to work, Aave’s community governance has voted to convert 1,600 ETH (roughly $3 million) into wsETH and rETH held in the Ethereum Collector Contract.

The Aave DAO now holds 1,786 awETH in Aave v2, which yields 1.69%, and 104 raw ETH in the Ethereum Collector Contract. 

To make more use of the ETH sitting in the protocol, the proposal requested to move 800 ETH into Rocket Pool’s rETH — plus an additional 800 ETH into Lido’s stETH and then wrap it to receive 800 rstETH.

“This AIP converts all the unproductive ETH balance, along with aWETH (v2 and v3) into the same amounts of wstETH and rETH,” the proposal said.

A total of 17 addresses voted, 100% in favor, with the majority of votes coming from two specific addresses. One was aavechan — a delegate platform founded by Marc Zeller, Aave’s founder.

It’s commonplace to delegate votes to decision-makers in DAOs. Such delegations represent a wider community of DAO members, who share or agree with a delegate’s perspective. 

The proposal was the second that was part of a larger goal to deploy the Ethereum Collector Contract, which Aave community governance members wanted to deploy to earn yield on existing funds. 

An initial proposal to consolidate collector contract assets had already passed earlier in May, with 100% of voters in favor. 

A third and final proposal to acquire Balancer Boosted Aave USD (BB-A-USD) through Cowswap, then deposit 50-50 between Balancer and Aura Finance, is set to follow.

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